6 Investors tapping into FinTech opportunities in India

By Gloria Mathias

The FinTech landscape is marked by continuous technological advancements and developments. This evolution has led to the emergence of cutting-edge digital applications and platforms, expanding the horizons of financial innovation.

Private equity (PE) and venture capital (VC) firms are increasingly tapping into FinTech opportunities in India due to the sector’s rapid growth, innovation, and potential for disruption in the financial services landscape. India’s FinTech ecosystem, driven by advancements in digital payments, lending platforms, neobanks, and blockchain technologies, presents a lucrative market for investors.

The rise of digital financial inclusion initiatives, supported by the government and regulatory bodies like the RBI, has opened up vast opportunities to serve the underserved segments, such as MSMEs and the unbanked population. Additionally, India’s growing digital adoption, large consumer base, and the rise of smartphone usage have accelerated the demand for seamless financial services. As FinTech companies are increasingly integrating technologies like AI and data analytics to enhance customer experiences, PE and VC firms see immense potential for scalability, strong returns, and the ability to drive long-term impact, further fueling their interest in the sector.

Below listed are the 6 venture capital firms tapping FinTech opportunities in India:

• Cedar-IBSi Capital

Cedar-IBSi Capital is an India-focused FinTech venture capital fund. Its primary focus is on B2B FinTech/BankTech and founders building infrastructure technology for the global BFSI industry. The fund is the brainchild of the global management consulting firm Cedar and global FinTech market intelligence firm IBS Intelligence. Cedar-IBSi Capital leverages the deep knowledge and intelligence backbone of Cedar Consulting and IBS Intelligence’s 30+ year track record in global financial services and technology research and consulting.

• Better 

Better is an India-focused pre-seed venture firm with a portfolio of 200+ companies, including stellar successes like Slice, Rupeek, Open, Khatabook, Bijak, Airmeet, Teachmint, Kutumb, Dukaan, Jai Kisan, Skill Lync, M2P, Toddle & more. Better partners with founders very early invests with deep conviction and helps its companies build systematically from idea to early PMF to traction, follow-on fund raises, and more.

• growX Ventures 

growX is an early-stage investment firm based out of Delhi. growX helps start-ups scale by investing time and money in the businesses and typically works closely with the investee companies at a strategic and operational level. growX investments are focused on seed and angel stages across various sectors. growX has recently funded OneStack, bagging $2m.

• Nexus Venture Partners 

Nexus Venture Partners is a venture capital firm that supports founders in building product-first companies. The firm serves as an inception, seed, or series-A stage partner to founders, actively engaging with them throughout the company lifecycle. With $2.6 billion under management, Nexus focuses on two primary investment areas: enterprise software companies globally and technology-powered businesses within India. The Nexus portfolio includes India Shelter Finance, TileDB, Jumbotail, PaySense, and Kiwi.

• 8i Ventures 

8i is a Mumbai & Bangalore-based early-stage fund that backs founders creating Fintech and consumer category leaders in India. The VC partners have supported 50 seed to early-stage startups over the last decade, creating more than $3B of value for their shareholders. These include several category leaders like Slice, M2P, Kodo, Signzy, Easebuzz, Blue Tokai, Carwale.com, HCG Global, EzeTap and MoneyTap.

• 100X.VC 

100X.VC is a VC to invest in early-stage startups using India SAFE Notes. The VC leverages its relationships with founders, co-investors, corporations, and investment bankers. After investing in a startup, 100X.VC effectively becomes their coach, strategy consultant, investment banker, business mentor and trusted advisor. 100X.VC is a SEBI Registered Investment Adviser and CAT I AIF. 100X.VC led a funding round for 50Fin, an India-based FinTech Company.